Budget 2024: Need to strengthen India’s supply chain through digital technologies
manufacturing hub providing resilient supply chain options for leading manufacturers across industry sectors. Technology enablement is critical to enable efficient and reliable supply chain operations and it is imperative for the government of India to strengthen nation’s digital backbone.
The G20 summit in 2023 raised significant concerns on the efficacy of global supply chains that break down during critical times and the need for immediate solutions including supply chain de-risking and diversification. The government of India emphasised India's crucial role in creating a reliable and efficient global supply chain and called on businesses to collaborate with India.
In line with this, the upcoming union budget 2024 presents an opportunity to address existing challenges and position India as the reliable supply chain node for the world.
Technology is revolutionising India's manufacturing sector, with a key focus on improving supply chain logistics. The surge in e-commerce and the need for efficient supply chains are pushing logistics companies to adopt advanced technologies.
India’s ambition of increasing its participation in global value chains (GVC) from the current level of ~40% to ~50% will require building manufacturing competency and supply chain efficiency. Considering these challenges, the upcoming budget need to enable investments in digital infrastructure, scaling of e-commerce, and adaption of smart logistics to strengthen supply chains in key focus areas:
Digital infrastructure: The biggest impetus should be given to creating an improved ecosystem for the digital supply chains of the future.
